Mastech Holdings Inc. reported Q1 2026 results that missed analyst expectations. EPS came in at $0.11, a 31.25% negative surprise versus the $0.16 forecast. Revenue was $41.1 million, 17.97% below the $50.8 million estimate. The stock dropped 12.13% in pre-market trading.
The company is focusing on revenue quality by exiting lower-margin areas, leading to a 15% year-over-year revenue decline. Gross margins improved by 10 basis points. The Talent segment saw an 11.8% revenue drop, while Data and AI declined 21.3%.
According to Bond.az, the stock has fallen nearly 12% over the past week, with a market cap of $76 million. Analysts believe the stock is currently undervalued. Management forecasts EPS of $0.17 for Q3 and Q4 2026, with annual EPS of $0.68 for FY2026 and $1.06 for FY2027.
CEO Nirav Patel emphasized strategic investments in AI and data platforms. The EDGE initiative is driving efficiency gains, enabling reinvestment into AI engineering and data platform capabilities. The company realigned into two segments: Talent and Data & AI.
